S African utility Eskom fires 1,000 striking workers

South Africa's state-owned electricity utility Eskom, which has been reeling under poor performance, strikes and management problems yesterday fired 1,000 contract workers at its new Medupi power plant.

The fired workers were charged with vandalism when they were on strike this week at the plant.

The dismissed workers are not direct employees of Eskom, but are hired by firms contracted by Eskom for the construction of the Medupi plant. About 21,000 workers participated in the strike protesting against poor living conditions and wages.

The workers have been informed of their dismissal via a text message, according to a company spokesman. 

A union leader said that no worker will return to work when 1,000 workers are fired.

"You can't fire workers by text, there are procedures to follow and unions to consult," Steve Nhlapo, head of metal workers union said.

Africa's biggest economy and a member of the BRICS group, has been battling with severe power shortage since 2008.

Gauteng-based Eskom is the leading electricity utility engaged in power generation, transmission and distribution in the country.

The company generates approximately 95 per cent of the electricity used in South Africa and approximately 45 per cent of the electricity used in Africa. Its total installed capacity is over 40,000 megawatts.

Inadequate investment, poor maintenance, labour and management problems has kept the company struggling to cope up with growing demand for electricity, and resorting to frequent power cuts.

Eskom is also at loggerheads with its senior management. The company's chief executive officer Tshediso Matona and his three executives were suspended this month while an enquiry is being conducted on the troubled company's operations.

Matona tried to revoke his suspension through a labour court in Johannesburg, but his petition was dismissed.

Judge Benita Whitchers said that "The application is struck from the roll,'' further adding that the challenge by Matona would be decided by an independent labour arbitrator.

Construction work at the new Medupi plant has been delayed due to labour unrest and technical hitches. The 800-megawatt plant is now scheduled to commence operation in July. The plant would be first power plant built in South Africa in two decades.